Dealer Fraud

There are several common car trade in price scams, tricks, and bargaining tactics when buying a new or used car from a dealer. Knowledge of these practices will give a car buyer an advantage one can at least be aware of what is happening in the process. Knowing how to avoid them is even more helpful because the result can be a far more attractive price one receives for a traded vehicle.

Negotiating Trade in Price

Right from the very beginning, the trade in price should be negotiated separately from the purchase price of the car one is interested in buying. Indicating real interest in buying a car will help in the negotiating process, but when asked about price, a buyer should persistently insist that the dealer value the trade in vehicle before details of the purchase are discussed. The two dealings should be treated as completely separate transactions.

Purchase Price Up Front

Several customers may prefer to negotiate the purchase price first, relying on publically available resources that are very clear on trade in value. As many dealers have a preference to pay the wholesale price, claiming that they have no intention of taking the vehicle into their own inventory, if one’s car is easily salable or an “in-demand” make or model, insisting on a higher price is important. The dealer is not obliged to wholesale the vehicle for a low price after the sale is complete. It is not obligated for the buyer to sell at a disadvantageous price.

Misinformation Provided

Extra similar scams include so-called mistakes as to the model or features on the trade in car. Asking early in the process if the dealer will purchase your car regardless of what you ultimately decide may help avoid some of these dealer tricks but being watchful and sticking to your budget and car-buying plan is critical.

1. Test Drives: NEVER talk about price until you test-drive the vehicle. Test-drive multiple vehicles at multiple dealers and make them compete for your business. You will never know if you like it until you take a test drive. Let the dealer know you are still shopping around.

2. Financing: NEVER tell the dealer about your pre-arranged financing; you want the dealer to think you are paying cash. If you have gone online and applied for a car loan, you are a cash buyer in their mind. This will get you a good price and will not allow the dealer to manipulate you into thinking you are getting a good deal.

3. Set the Value: Offer the dealer a set price you are willing to pay with everything included (taxes, fees, registration etc.) For example, in case you are interested in a Ford Explorer for $17,000.00 you should say “I will write you a check right now for $15,500.00 but that includes everything. Do we have a deal?” Do not give them an option. Always be willing to walk away!

4. Do Not Delay Too Long: NEVER stay in any dealership more than 30 minutes waiting for a price. A test drive should take 10 minutes. Give them a price after your test drive and let them know they have very short time to give you an answer. If you do not get an answer, leave and tell them they can call you if they want to sell you a vehicle today.

5. Read before You Sign: ALWAYS read your purchase order. Make sure you understand everything you are committing to and what your responsibilities are in this transaction. There are many “tricks of the trade” dealers will try to use. So be aware!

Everybody is at a disadvantage when going to a dealership and negotiating for a car. Staying in control of the process is the key during all kind of negotiations. Remember that you are the one making the purchase, the dealership is there to serve you - it should never be the other way around.

Online lending has become very popular with consumers because they can apply for a car loan before ever stepping foot in the dealership. This helps to put them in control of both the car buying process and over the financing portion of the sale as well which historically has been the largest profit piece of the car sale for the dealer. With your financing already taken care of, you have accomplished half of the negotiation battle already. Here are a few simple things to remember:

1. Research: Do your research before you shop It is essential to examine the trade-in’s value and the price of the model you want before you get to a dealership.

2. Make an Assignation: Make an assignation with an Internet sales person before going to a dealership. In general you will get a better price and less sales pressure. The internet sales person is more like a fleet person and is used to dealing with a savvier buyer.

3. Hold Your Personal Information: If you have gone online and taken care of your financing before going to the dealership, do not give the dealer your approval amount, desired payment, interest rate and most importantly, your social security number. If you already have financing lined up, a dealer does not need this for any reason.

4. Trade-Ins: If you have a Trade-in, do not disclose this information until after you have negotiated the price of the vehicle you are buying. Get the new car price in writing and then negotiate on the trade. These are two detached transactions are on one piece of paper.

Never

• NEVER buy a car that you have not seen in real life
• NEVER buy a car that have not been inspected by a professional mechanic
• NEVER transfer your money bank-to-bank during a deal
• NEVER belief a dealer who says that the transaction is guaranteed. The online marketplace such as eBay, Craigslist, PayPal and others do not exclude, that people from around the world using their services are legal.
• NEVER buy a car from someone who is not capable or unwilling to meet you face to face
• NEVER make a deal with sellers who want to conclude a transaction as quickly as possible. Scammers want to get your money before you have time to think or have a professional examine the deal.

Always

• ALWAYS try to make a deal in your local area when you are going to buy an automobile or other high-value products
• ALWAYS trust your instinct if you feel that a deal is too good to be true. Using online sites, people can submit the classifieds and in result, the majority of them have not a future legal transaction
• ALWAYS call the buyer or seller to establish phone contact. If the dealer seems to ignore details agreed to via e-mail or is unable to answer questions about their location or the location of the automobile in question, it is likely to be a scam.

If you feel that someone you know has been a victim of a car-buying fraud, or you need to protect yourself, visit to our www.dealerfraud.org site. Here you will find a lot of information about how to avoid dealer scams, and you can connect with our fraud lawyer.

As you look for a used car, you might come across the phrase “salvage title” in a used car advertisement. The price is going to seem right and you’re really going to buy it. Used car salvage titles are not bad idea at all, but make sure you know what you’re getting into before purchasing a used car with a salvage title.
Here you have four things for you to do before buying a vehicle with a salvage title:

•    Understand What a Salvage Title Is
•    Get a CarFax report
•    Get a Qualified Inspection
•    Weigh the savings vs. future costs

Understand What a Salvage Title Is

Basically salvage title is given to any vehicle that has persistent damage worth 75% or more of its value. For example, if you drive a 2003 car $9415 and it suffers $7061 in damage in a collision, it’s going to be branded with a title stamped “salvage.” In other words, it’s not considered fit to drive. Sometimes it is also called a junk title.

Normally it is fraud to sell a vehicle without disclosing that it once had a salvage or junk title. That’s why titles will be branded “resalvaged” or something similar to denote a vehicle that has been repaired from a salvage title.

Here you have a chief tip when dealing with a “resalvaged” title. Make the seller demonstrate what work has been done. In some states, revenues for parts and repair work have to be submitted in order to get the resalvage title.

Get a CarFax Report

Usually, CarFax reports aren’t the be-all and end-all, but you’ll find them useful when dealing with vehicles with salvage titles. They give basic facts about a vehicle’s history if you know what you’re looking for.

Unhappy used car shoppers are finding out horrible information after purchasing used cars. They are learning that their cars have been damaged in floods and they didn’t realize it before purchasing the car itself.
Here are some tips that can help you to escape being stuck with a vehicle that has many hidden repairs needed which can cost you much more than you planned on spending when you purchased that used vehicle.

Water-damaged car is something that can be much easier to hide than it is to repair, that is the reason you need to inspect in hidden areas to determine if the used car you are considering to buy might have flood damage.

Inside the car the first thing you should do is to give the car a good test. Many car dealers use odor but see if you can detect a rotten tinge to the air that would be a definitely warning sign.

Moreover touch the carpet of the car, many times cars with flood damage have water trapped under the carpet that remains there and is not detected. When inspecting the carpet, note if it is new. If the car is an older one, made sure you ask the sales person why the new carpet was installed in the car and have the answer documented if you buy the car in case you need to refer to that conversation due to a complaint you have after purchasing.

Another point to examine while you are still on the floor of the car is the brake and gas pedals. You will want to look under the pedals to see if there are any signs of wear from water including rust. Also check the bolts and screws under the seats as well.

Odometer fraud is the illegal process of rolling back the vehicle’s odometers in order to make it appear that vehicles have lower mileage than they actually do. Odometer fraud occurs when the vehicle seller fallaciously represents the actual mileage of a vehicle to the buyer.

Odometer tampering is not only illegal, but expensive. As the buyer thinks the car has fewer miles, he/she pays more for the car, more in insurance and repairs. The National Highway Traffic Safety Administration guesstimates - odometer fraud costs buyers about $10 billion every year.

Here are steps to avoid odometer fraud.

1.    Compare the present mileage with the odometer statement the seller received when he/she bought the car.

2.    Check the tires. The original tires of the car should last for about 60,000 miles, so new tires on a car with low mileage should alert you to take a closer look.

3.    Look for things that indicate the mileage of the car. Oil change prompt stickers, warranty cards and service receipts will typically have the mileage noted.

4.    Have a trustworthy mechanic inspect the car thoroughly. The mechanic should look for the problems with the emissions system. These areas will show signs of high mileage. In addition ask the mechanic to see whether the odometer cover has been removed.

5.    Be especially attentive when buying certain models: Popular models for rolling back miles include sport utility vehicles, Chevy Luminas, Ford Tauruses and Chrysler minivans.

6.    Be wary of retired, low-mileage fleet vehicles. Unfair buyers usually clean the cars up, put on a new brake pedal cover, roll back the odometer and resell it for a tidy profit. Cars like this are usually driven more than 30,000 miles a year.

Feel free to call an experienced car dealer fraud lawyer Hovanes Margarian for valuable advice and help.

Find out how old the car is

The car may look great, but if it is not a new one, it may not be worth purchasing.

Ask for the service records

Having on your hands the service records, you will to see how often the oil has been changed, tires balanced and rotated, as well as any leaks or other repairs that might have befallen to your beloved vehicle.

Take the car to your mechanic

In case it is obvious that you are serious about buying that car, auto dealers never mind if you take the vehicle to your mechanic for a quick engine check.

Open the hood yourself

Check whether the cables are in good shape, there are no leaks, the spark plugs are new and functional, and that the oil is clean. These are good signs that the dealership has already prepped the car for sale.

Take the car for a test drive

While driving the car out on an open road, try to press the gas pedal to the floor to see if it chokes or lurches at full throttle. In case it does, take the car back to the dealer to look at it to ensure there’s nothing seriously wrong with the car.

Check the brakes

While driving the car; first, check to ensure no one is behind you, and then take the car to a high rate of speed before popping the brakes. This will help you determine their condition and how well the car handles when hitting the brakes quickly.

Older cars have great qualities, and can be great, reliable transportation for a reasonable price. Take the extra time to ensure that your new “gently used” vehicle is not a lemon, and you will be able to enjoy it for years to come.

If all else fails try turning to an experienced car dealer fraud attorney for valuable advice and help.

Car financing is a common incident; yet it does not mean that you can take it carelessly. You need to be aware of the different financing choices that exist. A little investigation may help you to obtain a superior financing deal.
Be wary of someone who tries to convince you that financing a car is a better deal than paying cash for it. It is not excluded that the premiums could possibly be reasonable, collectively by taking out a loan and paying interest, you will be paying much more for the vehicle than you would if you were to pay cash for it. The only method that financing could be less expensive than paying cash is if you can put the cash to work for you and earn more on that money than the interest that you would have to pay for the loan.
Some car dealers will try to prove to you that financing is cheaper. In reality, they might offer you some software program that misrepresents the “benefits” of financing versus paying cash for a vehicle. The programmed cost evaluation that they present to you comes out to “demonstrate” that you can save money by financing at one interest rate and investing the cash not spent in a certificate of deposit (CD) at a financial institution at a lower rate. The only real way you could end up ahead in this situation would be by borrowing at a lower interest rate and investing the money at a higher interest rate. It is improbable that you will be able to find such an arrangement.
Auto financing is something more serious than you take it. Be sure you are not being taken advantage of. Search for loans by yourself. Ask your bank or credit union. Check internet sites. Ask the automobile dealership. Assess rates and terms from several loan companies.
If you have any further concerns on this topic, feel free to contact car dealer fraud attorney Hovanes Margarian.

For those who are in need of cash to finance the purchase of a car, taking up an auto finance loan is the only way out. When a person is granted approval for an auto finance loan, the lender normally hands him/her the exact amount that he/she has applied for. An auto finance loan is a kind of loan that gives the individual an opportunity to own a car he/she was eager to have.

Today most people or organizations cannot be trusted because their word is no longer their bonds and their promises are no longer kept. The only way you can be recommended to avoid being scammed when applying for an online auto finance loan, is that you should be very watchful and careful. In case you are not watchful or careful, the possibility that you might be defrauded and robbed of your hard-earned money will increase surely.

Recently, online auto finance loan frauds and scams are widely spread. Auto finance loan scam is a term that is used for describing the dubious strategy that is employed by most internet criminals and scam artists in depriving innocent and unsuspecting victims of their hard-earned money.

Car finance loan scams are usually made by dirty criminals, and low life scum bergs that have no integrity. Their main vision is to rob innocent and unsuspecting people.

To avoid being a victim of auto finance fraud, it would be better to stick to only those lenders or auto finance institutions whose identity you are certain of. Always avoid doing business with a lender who has not been highly recommended.